Investing in Florida property can be profitable and rewarding. But many investors may wonder whether this year is a good time for real estate investing in Florida. And if it is, where should they invest? You may have already read that housing inventory is high, and demand is steady. Usually, these are positive signs for entering a market. However, many other economic, political, demographic, and social aspects indicate that it may be an excellent time to become a real estate investor in Florida.

This article will give you a complete account of all the factors currently contributing to hot real estate markets in Florida. It details some of the best places to invest and possible problems to consider.

State of Florida Real Estate

This period in the post-pandemic economy may be the best time for real estate investing in Florida. From 2020 to 2021, the Florida real estate market was booming until it started slowing down in 2022. The data indicates a 29.9% decrease in home sales and a 21.7% decline in home listings. But simultaneously, home sale prices increase by 15.1% over the year.

These events show that despite the slowdown in sales and listings, the appreciation in real estate investments in Florida still offers a healthy return. For example, in January 2023, the median sale price in Florida was $386,500, plus 6% year-over-year.

Florida’s Strong Rental Market

Florida’s combination of warm weather, affordable living, and beautiful waterways has been an effective lure for the massive group of people flowing into the Sunshine State to escape the high cost of living and taxes in other states. This notable in-migration trend has supplied the Florida rental market with a steady stream of qualified renters.
Since the days before the COVID-19 pandemic, rental rates have dramatically grown nationwide. And Florida was no exception. Its rental prices increased by 36 percent from 2020 to 2022. However, Florida’s median rent rate of $1,379 is much lower than California’s ($1,901), New Jersey’s ($1,700), and Washington’s ($1,557).
Rental rates vary broadly within the state. For example, the rental rate for a one-bedroom apartment in Washington County is $557. But the same floorplan in Palm Beach County rents for $1,180. This rate variance by location is why you should determine the rental yield from your potential real estate investment in Florida to determine the return on investment (ROI).

Reasons Florida’s Real Estate Market is Hot

Florida’s vibrant real estate market stems from several inherent advantages and dynamic factors. These are the most influential.

Florida’s Economy Growth

Forbes identifies Florida as one of the top states for economic growth over the last ten years. Due to low taxes, business-friendly policies, and a strong workforce, Florida’s GDP grew by 30% between 2011 and 2021, ranking 4th in the U.S.
Florida’s growing economy provides a sturdy platform for a thriving real estate market. With a stable Florida economy, people can do the following:

• Afford to take on a mortgage,
• Buy properties,
• Consistently pay rent,
• Place competitive bids on the available property,
• Avoid evictions and foreclosures.

Before you invest in a Florida property, evaluate the business ecosystem in the area. It would be best to determine whether the community has any large established businesses and whether new companies plan to expand into your community. These attributes can heighten your chances of being a successful real estate investor Florida.